AFSB 152 THE INSTITUTES EXAM SCRIPT
2026 FULL SOLUTION QUESTIONS AND
ANSWERS GRADED A+
⩥ Which one of the following describes what happens if there are gaps
or omissions in the construction plans and specifications when they are
offered in the competitive bid process, and they are discovered after the
construction begins?
- The contractor must make the changes at its own costs because it failed
to notice the gaps or omissions before placing a bid to contract for the
project
- The project owner must pay additional money to the contractor in the
form of change orders during the course of construction
- The contractor must complete the project according to the plans and
specifications, and the owner must contract to correct the problems when
the construction is completed
- The contractor must make the changes and negotiate with the project
owner to share the costs of the changes.
Answer: The project owner must pay additional money to the contractor
in the form of change orders during the course of construction
⩥ Sheldon Contracting was hired as the general contractor for a large
commercial project. The general contractor is responsible to the owner
for
,- Properly constructing the project in accordance with the plans and
specifications and in the prescribed time period
- Furnishing an estimated project cost that can be used to negotiate
financing with lending institutions
- Engaging consultants in fields for which he or she lacks the expertise
necessary for the particular project
- Defining the project through specifications that, if built in accordance
with their terms, fulfill the owner's expectations.
Answer: Properly constructing the project in accordance with the plans
and specifications and in the prescribed time period
⩥ Which one of the following in a construction contract would make
failure to promptly complete a project a material breach of contract?
- Time is of the essence provision
- Time for completion clause
- Retainage
- Force majeure clause.
Answer: Time is of the essence provision
⩥ A contractor may take advantage of saved costs, when estimating
materials and equipment, by
- Ordering all supplies for the project from a single supplier or from a
given manufacturer
, - Considering the costs of expendable equipment that will be lost,
damaged, or worn out during the project
- Considering reuse of materials that were used temporarily in one
project in a subsequent project
- Considering the costs of equipment that is needed to install certain
building features and any required assembly time.
Answer: Considering reuse of materials that were used temporarily in
one project in a subsequent project
⩥ Crowley Construction was bidding on a large construction contract for
Wolff Properties. Crowley Construction was named as the principal on a
bid bond. A bid bond guarantees that if the contract is awarded to the
principal,
- The principal will sign the contract within a specified time after the
award and furnish the required performance and payment bonds
- The surety will pay the percentage bond penalty or the difference
between the principal's bid and the next lowest bid, whichever is greater,
if the principal defaults on the bond
- The principal will complete the contract as described in the
specifications and within the time specified
- The surety will pay the costs to complete the project if the principal
fails to complete it.
Answer: The principal will sign the contract within a specified time after
the award and furnish the required performance and payment bonds
2026 FULL SOLUTION QUESTIONS AND
ANSWERS GRADED A+
⩥ Which one of the following describes what happens if there are gaps
or omissions in the construction plans and specifications when they are
offered in the competitive bid process, and they are discovered after the
construction begins?
- The contractor must make the changes at its own costs because it failed
to notice the gaps or omissions before placing a bid to contract for the
project
- The project owner must pay additional money to the contractor in the
form of change orders during the course of construction
- The contractor must complete the project according to the plans and
specifications, and the owner must contract to correct the problems when
the construction is completed
- The contractor must make the changes and negotiate with the project
owner to share the costs of the changes.
Answer: The project owner must pay additional money to the contractor
in the form of change orders during the course of construction
⩥ Sheldon Contracting was hired as the general contractor for a large
commercial project. The general contractor is responsible to the owner
for
,- Properly constructing the project in accordance with the plans and
specifications and in the prescribed time period
- Furnishing an estimated project cost that can be used to negotiate
financing with lending institutions
- Engaging consultants in fields for which he or she lacks the expertise
necessary for the particular project
- Defining the project through specifications that, if built in accordance
with their terms, fulfill the owner's expectations.
Answer: Properly constructing the project in accordance with the plans
and specifications and in the prescribed time period
⩥ Which one of the following in a construction contract would make
failure to promptly complete a project a material breach of contract?
- Time is of the essence provision
- Time for completion clause
- Retainage
- Force majeure clause.
Answer: Time is of the essence provision
⩥ A contractor may take advantage of saved costs, when estimating
materials and equipment, by
- Ordering all supplies for the project from a single supplier or from a
given manufacturer
, - Considering the costs of expendable equipment that will be lost,
damaged, or worn out during the project
- Considering reuse of materials that were used temporarily in one
project in a subsequent project
- Considering the costs of equipment that is needed to install certain
building features and any required assembly time.
Answer: Considering reuse of materials that were used temporarily in
one project in a subsequent project
⩥ Crowley Construction was bidding on a large construction contract for
Wolff Properties. Crowley Construction was named as the principal on a
bid bond. A bid bond guarantees that if the contract is awarded to the
principal,
- The principal will sign the contract within a specified time after the
award and furnish the required performance and payment bonds
- The surety will pay the percentage bond penalty or the difference
between the principal's bid and the next lowest bid, whichever is greater,
if the principal defaults on the bond
- The principal will complete the contract as described in the
specifications and within the time specified
- The surety will pay the costs to complete the project if the principal
fails to complete it.
Answer: The principal will sign the contract within a specified time after
the award and furnish the required performance and payment bonds
